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Goldman Sachs plans crypto platform spinout

Goldman Sachs plans crypto platform spinout

GrafaGrafa2024/11/19 17:00
By:Mahathir Bayena

Goldman Sachs is planning to spin off its cryptocurrency platform to create a new company focused on the development and trading of financial instruments on blockchain networks, as reported by Bloomberg on November 18.

Mathew McDermott, global head of digital assets at Goldman, mentioned that the bank is in discussions with potential partners to expand the platform’s offerings and capabilities.

The spinout process could take 12 to 18 months, subject to regulatory approvals.

Tradeweb Markets, an electronic trading platform, is expected to play a strategic role in this new venture.

“It’s in the best interest of the market to have something that is industry-owned,” stated McDermott, emphasising the market benefits.

Earlier this year, McDermott shared Goldman Sachs’ plans to introduce three new tokenisation products in response to growing client interest.

These products aim to create marketplaces for tokenised real-world assets (RWAs) and will target financial institutions, focusing on complex U.S. and European debt markets.

The platform will operate on permissioned blockchains to ensure secure and compliant trading.

Goldman’s strategy includes offering a robust marketplace characterised by fast execution and a broader range of collateral assets.

McDermott linked the current rise in crypto interest to the proliferation of exchange-traded funds (ETFs) for digital assets.

Throughout 2024, nearly a dozen Bitcoin (CRYPTO:BTC) ETFs have launched, and U.S. regulators approved spot Ether (CRYPTO:ETH) ETFs in July.

Goldman Sachs has been an active participant in the crypto ETF market this year.

Demand for tokenised RWAs has grown significantly, with U.S. Treasury debt accounting for about $2.4 billion in total value locked as of November 14, according to RWA.xyz.

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